Pension gap between the sexes increases for another year

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14 December 2016

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Women who retired this year have the highest retirement income on record.

But the gender gap is yet again in the spotlight, showing women are £5,400 a year worse off than male retirees.

The figures, by pension firm Prudential, show that women have an average expected retirement income of £14,450; the highest on record.

In 2015 Ellis & Co reported how women would retire on £4,800 a year less than men; within only 12 months the gap between the two sexes has increased by £600.

“The growth of the gender gap among the Class of 2016 partly reverses some of the gains made by women retiring in 2015, when there was a record fall in the size of the gender gap of nearly £2,000,” said Prudential’s Class of 2016 research report.

“Despite this year’s rising gap, the difference between men’s and women’s expected retirement incomes is still around £4,000 less than in 2008, the year when it was at its largest at £9,500.”

Peter Way-Rider, Tax Manager at Ellis & Co added: “It is more common for women to take breaks during their working life, taking maternity leave and maybe a few year’s out of work to stay at home with their children.

“There are a few things that can be done in order to keep your pension fund topped up, including making contributions to your pension whilst you are not working and once you have returned to work – making voluntary contributions.”

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